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Basic Question 3 of 20
A ______ exists when the ______ is higher than the spot rate.
B. discount; futures rate
C. premium; forward rate.
A. discount; forward rate
B. discount; futures rate
C. premium; forward rate.
User Contributed Comments 3
| User | Comment |
|---|---|
| Shaan23 | The dollar would quote at a premium but the chinese would be at a discount. |
| maryprz14 | 6.3100 - 6.2935 = 0.0156? |
| myron | check your math @maryprz14: it is 0.0165. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain spot and forward rates and calculate the forward premium/discount for a given currency;
calculate the mark-to-market value of a forward contract;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.